International finance corporation IFC, a member of the World Bank Group has disbursed a loan to FINCA Microcredit Company in Kyrgyzstan and Azerbaijan in the national currency.

Loans in the amount of 6 million USD for FINCA in Kyrgyzstan and 7 million USD loan for FINCA in Azerbaijan will promote increasing access to financing of small and medium entrepreneurs in remote rural regions.

Such financial operations strengthen partnership between IFC and FINCA International, one of the largest microfinance networks in the world, and support joint efforts on creating and strengthening of stable microfinance institutions.

Long-term loans in the national currency that have been disbursed to FINCA in Kyrgyzstan and Azerbaijan will promote stable financing for low-income entrepreneurs in remote regions, not putting them at currency risks, – Steve McGwire, the financial director of FINCA International, tells. – IFC presence in the regions supports the program of FINCA assistance to those who have limited access to bank services.
.
– Microfinance is an important tool of poverty overcoming and of improvement in quality of life of the population in developing countries, Snejana Stoilikovich, IFC director in Europe and Central Asia countries, comments. – These loans will expand the access to financing in underserved regions, promoting economic development and creation of work places.

This investment facilitates reaching IFC goals in Eastern Europe and Central Asia countries in coverage of more vulnerable social groups. From the moment of microfinance launching, IFC continues to implement innovations in microfinance, using new achievements in the sphere of technologies, financial products and strategies for providing assistance to financial institutions in coverage of more people by more rational way from the costs point of view.

Tasks of IFC are to create and support viable microfinance institutions that can attract private capital to expand the coverage of target group and satisfaction of population needs. However to date microfinance covers less than 20% of its potential market among over three milliard of poor population in the world, which makes this initiative especially important.